FrieslandCampina has announced the intended sale of its milk powder towers in Aalter, Belgium, to Dutch dairy firm Royal A-ware.
As a result of the acquisition, Royal A-ware intends to take over the milk powder production of the Aalter plant – which reportedly has a capacity of approximately 45,000 tons – from FrieslandCampina.
Following the transaction, FrieslandCampina will continue its production of consumer dairy in Aalter and will continue with its planned investments.
The announcement marks another move in the company’s ongoing restructuring strategy, in order to further improve its network while maintaining maximum milk processing, increased value creation and cost optimisation.
Yesterday, FrieslandCampina revealed its intentions to close its Yoko Cheese packaging facility in Genk, Belgium, and last week announced that it would discontinue powder production at its production plants in Dronrijp and Gerkesklooster.
Meanwhile, the acquisition is said to be in line with Royal A-ware’s strategy to expand its product portfolio. The Dutch company intends to invest in the plant to effectively respond to customer demand.
Upon conclusion of a final agreement between the two parties, the 40 employees at the Aalter milk powder towers will switch to Royal A-ware.
The intended acquisition, which is subject to customary conditions, is expected to be completed before the end of the first quarter of 2021.
Last year, the two companies entered into an agreement for the production and supply of mozzarella cheese. As part of the deal, FrieslandCampina agreed to supply milk and be responsible for the sale of the mozzarella, while Royal A-ware would take care of the processing of the milk and cheese production in a facility in Heerenveen, the Netherlands.
© FoodBev Media Ltd 2020
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